The present invention relates to a medical device utilizing a balloon catheter for placement of an expandable intraluminal graft, commonly called a stent, within a body passageway such as an artery. Such stents can also be used for the placement of interluminal grafts such as aortic aneurism grafts. The invention especially relates to a medical device including a balloon catheter which can provide forcible expansion of the cross-section of an artery that has been narrowed by atherosclerotic lesion or stenosis and also simultaneously implant a stent at a predetermined site within the artery. The invention further relates to a medical device including a balloon catheter and a method of operating it which can both implant a stent in body passageway and also dispense medication at a predetermined site within the passageway.